The Securities and Futures Commission (SFC) of Hong Kong has prohibited Mr Law Man Wai, a former licensed representative of Cinda International Securities Limited (CISL), from re-entering the industry for three years from 19 June 2025 to 18 June 2028.

The disciplinary action follows an SFC investigation which found that Law had used accounts belonging to his sister and a friend, maintained with CISL and another brokerage, to conduct personal trading.

Between March and September 2023, Law executed a total of 109 matched or wash trades in nine stocks in the accounts of his sister and friend, as well as his own personal account at CISL. Law carried out these trades to avoid forced liquidation due to potential margin calls, without regard for their potential impact on the trading price or volume of the relevant stocks.

The SFC also found that Law intentionally concealed his beneficial interests and personal trades in those accounts, in violation of CISL’s staff dealing policy. He also confirmed executed trades with his sister and friend using CISL’s recorded telephone line and submitted order records to CISL signed by them, creating a false impression that the orders originated from them when this was not the case.

Furthermore, Law impersonated his friend to place order for his friend’s account at the other brokerage, leaving the firm unaware that Law was operating the account.

The SFC concluded that Law’s conduct was dishonest and raised serious concerns about his fitness and properness to be licensed. In deciding the sanction, the SFC has taken into account that there is insufficient evidence that Law executed the wash and matched trades with manipulative intent and that Law has an otherwise clean disciplinary record.